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Innocent Ruwende Municipal Reporter
Harare City Council will set aside $275 000 to pay workers salaries in a bid to reduce arrears that have accumulated over the past six months, it has been learnt.
The city is paying salaries for December last year for some grades while other workers are being paid their January salaries.
Questions are now being raised whether the city has any money set aside for service delivery.
Acting Town Clerk Mrs Josephine Ncube said management had put in place strategies to accelerate revenue collection in order to reduce the salary arrears.
“Kindly note that management has set a target of $275 000 towards the payment of salaries on a daily basis for both city main and Harare Water,” she said.
According to the recent minutes of the finance and development committee, finance director Mr Justin Mandizha, who some councillors blame for worsening the city’s salary situation, said the prevailing economic challenges had affected most Harare residents and corresponding revenue inflows.
“He further reported on the various sector variances as well as the position on council’s debtors and creditors,” reads part of the minutes.
Aggregated income and expenditure summary for January to March this year indicated a surplus of $22 million.
“Debtors were reported at $387,4 million while creditors stood at $394,1 million as at March 31, 2016 a total of $27,2 million was owed to CABS and BancABC as at March 31, 2016,” reads the minutes.
During discussion Mr Mandizha highlighted on the performance of accounts relating to water and sanitation, property tax, refuse collection, markets and public safety among others.
The committee noted with concern that the state of the city’s finances was not pleasing hence there was need for Mr Mandizha to implement drastic measures on revenue collection.
“The committee also discussed on the position of creditors and was of the view that the finance director had to implement a prioritised system of payment of goods and services. The position regarding salary arrears to council and the committee felt that measures had to be taken to address this issue as a matter of urgency.
“The finance director (Mr Mandizha) was thus tasked to consider various interventions as discussed at the meeting towards revenue collection and report to the committee,” read the minutes.
Mrs Ncube advised that emphasis was being put on revenue collection and heads of departments were putting together various strategies to ensure success in this regard.
The committee resolved that Mrs Ncube and Mr Mandizha take action to implement various interventions highlighted at the meeting to ensure improved revenue collection in the city and report to the committee.
Asked if the city will have money for service delivery, acting corporate communications manager Mr Michael Chideme said: “Yes, there is an amount set aside for service delivery and for the day-to-day running of council business.
“People are not paying their bills. Residents need to realise that we can only provide quality service if they play their part and pay their bills.”
Last year the city forced the then town clerk, Dr Tendai Mahachi, to pay salaries despite low revenue collections and Dr Mahachi went on to borrow to pay salaries and it is believed the loan is one of the problems haunting council.
Online Reporter